New Incentives from the District of Columbia and the US Government Go a Long Way to Recoup Your Investment in Solar Energy
Early Movers Will Benefit the Most, and More Quickly
Two New – and Compelling – Reasons To Go Solar in the District of Columbia
- The District of Columbia has a brand new rebate as part of its expanding GreenEnergyDC program to help pay for solar electric and other renewable energy systems. The rebate is being funded by a Sustainable Energy Trust Fund, which in turn is funded by a public benefits charge paid by customers of Pepco and Washington Gas who reside or do business in the District of Columbia.
- The new Federal Investment Tax Credit (ITC) earns homeowners a credit (not a deduction) equal to 30% of the full installed solar electric system cost. Combined with the GreenEnergyDC rebate, DC homeowners can expect to recoup more than half the cost of a new solar electric system. This combination comprises one of the most generous solar incentive packages in the nation.
How You and the District of Columbia Benefit
Through the use of renewable energy to produce grid-connected electricity, District residents, business and institutions can lower their ongoing energy costs, create local jobs, improve air quality and reduce local greenhouse gas emissions, all while reducing the need for polluting fuel sources.
Standard Solar can guide you through the application process to help ensure your application is given the quickest turn-around possible. Based on the popularity of similar programs in Maryland and Delaware, funds dedicated to these “GreenEnergyDC” incentives are likely to go fast. So those moving this winter and spring will maximize their chances of securing the rebate and thus can significantly decrease the net cost of their investments.
How the Incentives Are Structured
Here is how the incentives are structured for electricity generated by solar panels:
A solar, or photovoltaic (PV), panel or module is rated by the amount of direct-current electricity it can generate. The approximately 3-feet by 5-feet panels each range in power output from 175 watts to 230 watts. The higher the wattage, the more electricity each panel, and the entire system, can generate.
The GreenEnergyDC incentive program pays:
- $3 for each of the first 3,000 installed watts;
- $2 for each of the next 7,000 watts; and
- $1 for each of the next 10,000 installed watts.
Examples: What These Home Solar Electric Systems Would Earn from the GreenEnergyDC program:
- 3,150 watt (3.15 kilowatt) system: $ 9,300… [$3 x 3,000 watts + $2 x 150 watts]
- 5,400 watt (5.40 kilowatt) system: $ 13,800… [$3 x 3,000 watts + $2 x 2,400 watts]
- 7,200 watt (7.20 kilowatt) system: $ 17,400… [$3 x 3,000 watts + $2 x 4,200 watts]
The maximum the program can pay back to a District resident is $33,000, for a 20,000 watt (or 20 kilowatt) system. Add this grant money to 30% Federal Investment Tax Credit and below is the estimated total incentive amount three example systems above would earn:
| System Size |
Approx. Costs for Illustrative Purposes Only* |
GreenEnergyDC Rebate |
Federal ITC** |
Combined Incentive $ / % Paid Back |
| 3.15 kilowatts |
$25,000 |
$9,300 |
$7,500 |
$16,800 / 67% |
| 5.40 kilowatts |
$35,000 |
$13,800 |
$10,500 |
$24,300 / 69% |
| 7.20 kilowatts |
$43,000 |
$17,400 |
$12,900 |
$30,300 / 70% |
* Certain installations in the District of Columbia may require additional charges due to neighborhood, zoning and /or architectural rules and requirements.
** The amount available using the Federal credit may be reduced by the amount of the DC incentive. Consult a tax advisor to determine the most prudent course to follow.